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NVIDIA Delivers Record Quarter as AI Demand Booms, but China Uncertainty Persists
“Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap — production of Blackwell Ultra is ramping at full speed, and demand is extraordinary,” said founder and CEO Jensen Huang.
“The AI race is on, and Blackwell is the platform at its center,” he added.
The company’s data center division once again fueled growth as it generated US$41.1 billion in revenue, 56 percent higher than a year ago. Roughly US$33.8 billion of that total came from sales of NVIDIA's GPUs, while US$7.3 billion was from networking hardware that ties together large AI computing systems.
Sales of NVIDIA's Blackwell processors, launched in May, rose 17 percent quarter-on-quarter. The product line has quickly become the backbone of NVIDIA's data center business, accounting for a majority of the segment's revenue.
Wall Street reacts to NVIDIA results
Despite NVIDIA's strong numbers, company shares initially slipped in after-hours trading as some investors fretted about slower growth momentum in the data center division.
Regardless, the stock later pared its losses by turning positive on Thursday (August 28).
Overall, NVIDIA has surged 35 percent so far this year after nearly tripling in 2024.
NVIDIA performance, August 25 to 28, 2025.
Chart via Google Finance.
The company is guiding for revenue of US$54 billion, plus or minus 2 percent, in the October quarter.
However, that forecast does not assume any shipments of the H20, a chip that was designed for the Chinese market, but is currently sidelined by export restrictions.
Colette Kress, NVIDIA's CFO, told analysts the company could ship between US$2 billion and US$5 billion worth of H20 processors this quarter if geopolitical conditions allow.
No H20 sales to China
NVIDIA confirmed it had no H20 sales to China in its second quarter.
Instead, it benefited from releasing US$180 million in previously reserved H20 inventory to a customer outside of China, boosting reported revenue by US$650 million. The company previously said that the lack of H20 shipments cost it up to US$8 billion in potential sales in the second quarter alone.
Huang met with US President Donald Trump earlier this summer to lobby for licenses to export the H20, a chip that was developed specifically to comply with US trade restrictions.
Under a tentative deal, NVIDIA agreed to pay 15 percent of China H20 revenue to the US government in exchange for export approvals. However, the arrangement has yet to be codified into a formal agreement.
Blackwell and the China dilemma
Beyond H20, attention has shifted to NVIDIA's newest flagship processor, Blackwell.
On Wednesday’s (August 27) earnings call, Huang said there is “a real possibility” of bringing Blackwell to China.
“We just have to keep advocating the importance of American tech companies to be able to lead and win the AI race, and help make the American tech stack the global standard,” he said. Huang estimates that China represents a US$50 billion opportunity for NVIDIA this year, with growth of 50 percent annually. He argued it is better for Chinese AI firms to use NVIDIA chips, even if modified, rather than being forced to rely on domestic alternatives.
Trump, however, has expressed caution. Speaking at a press conference earlier this month, he said, “The Blackwell is super-duper advanced. I wouldn’t make a deal with that.”
However, he said he could allow a “somewhat enhanced in a negative way” Blackwell chip to be sold to China, further suggesting that such a version could be slowed by 30 to 50 percent to comply with US restrictions.
Even without China sales, NVIDIA maintains a bright outlook.
Huang told analysts the buildout of AI infrastructure is still in its early stages, further projecting that global spending on AI infrastructure could reach US$3 trillion to US$4 trillion by the end of the decade.
Furthermore, large cloud providers, which remain NVIDIA's biggest customers, have announced plans to spend tens of billions of dollars per quarter on AI infrastructure, ensuring a steady pipeline of demand for the company's chips.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Tech 5: US Government Strikes Big Tech Deal, Perplexity Plots Expansion
1. US government strikes controversial Big Tech deal
On Monday (August 11), the Washington Post reported on a deal between the US government and tech giants NVIDIA (NASDAQ:NVDA) and Advanced Micro Devices (AMD) (NASDAQ:AMD). It stipulates that the tech companies must surrender 15 percent of revenue from Chinese sales of NVIDIA's H20 chips and AMD's MI308 chips.
Anonymous sources told the news outlet that this condition was imposed as a prerequisite for granting the companies export licenses to sell their products in China. The move that has prompted legal concerns among trade experts who say the fee could be construed as an unconstitutional trade tax.
“To call this unusual or unprecedented would be a staggering understatement,” Stephen Olson, a former US trade negotiator, told Bloomberg. “What we are seeing is in effect the monetization of US trade policy in which US companies must pay the US government for permission to export.”
AMD, NVIDIA and Intel performance, August 12 to 15, 2025.
Chart via Google Finance.
Meanwhile, shares of Intel (NASDAQ:INTC) rose as much as 4.6 percent on Tuesday (August 12) following a "candid and constructive" meeting between CEO Lip-Bu Tan and US President Donald Trump on Monday.
The meeting came after Trump called for Tan's removal last week.
According to a separate Bloomberg article, the US government is considering taking a stake in the chipmaker to help it establish a planned factory hub in Ohio; the company once promised it would be the world’s largest chipmaking facility. Tan has not confirmed or denied the report, but discussions are said to be ongoing. Sources told Bloomberg the government is considering using funds from the Biden administration’s Chips Act to fund the stake.
2. Amazon to expand grocery delivery services
Amazon (NASDAQ:AMZN) shares rose as much as 1.3 percent on Wednesday (August 13) after the commerce company announced plans to significantly expand its grocery services.
On Wednesday, the company said its same-day delivery service will now include fresh groceries, including produce, meat and dairy, in over 1,000 cities, with plans to expand into more than 2,300 by the end of the year.
The service is included in Amazon Prime memberships for orders over US$25. Smaller orders and orders from non-members will require fees of US$2.99 and US$12.99, respectively.
3. CoreWeave shares drop after mixed earnings report
Artificial intelligence (AI) data center operator CoreWeave (NASDAQ:CRWV) reported mixed Q2 results on Tuesday, with revenue more than doubling year-on-year to US$1.2 billion, beating estimates of US$1.08 billion, and a revenue backlog of US$30.1 billion. However, the growth came at a high cost. The company reported a record US$2.9 billion in capital expenditures for the quarter, and operating expenses jumped by 276 percent to US$1.19 billion.
CoreWeave performance, August 12 to 15, 2025.
Chart via Google Finance.
The company also reported losses of US$291 million, larger than the US$190.6 million analysts had estimated.
Shares of CoreWeave opened more than 10 percent lower on Wednesday and declined throughout the week, closing at US$99.97 on Friday (August 15) compared to Monday’s opening price of US$134.80.
4. Perplexity bids on Chrome, prepares for fresh funding round
AI startup Perplexity made a US$34.5 billion bid for Google's (NASDAQ:GOOGL) web browser, Chrome, in a move to secure its future in the AI search market. Perplexity told the Wall Street Journal that the unsolicited offer would be funded with the help of outside investors. The company's advance comes as Google faces a potential divestiture following an antitrust trial that found it had illegally monopolized online search and search advertising.
OpenAI has also expressed interest in acquiring Chrome.
On Thursday, Business Insider reported that Perplexity is preparing for another round of funding, which would mark its sixth fundraiser in 18 months. The company is reportedly seeking a post-money valuation of US$20 billion. This comes barely one month after the startup achieved a US$18 billion valuation.
The rapid succession of these events underscores the intense, high-stakes competition among AI startups to secure foundational assets and challenge established tech giants.
Canadian AI startup Cohere secured US$500 million in fresh funding on Thursday from a group of investors that included NVIDIA and AMD, bringing its valuation to US$6.8 billion. The company also onboarded former executives from Uber Technologies (NYSE:UBER) and Meta Platforms (NASDAQ:META).
5. Apple plans product expansion
Apple (NASDAQ:AAPL) shares climbed as high as 1.7 percent on Wednesday after Bloomberg reported on the company’s planned expansion into robotics, home security and smart displays.
The new products are aimed at strengthening Apple's product ecosystem, which has paled in comparison to offerings from tech rivals like Amazon and Meta.
Apple performance, August 12 to 15, 2025.
Chart via Google Finance.
Some of the new devices slated for future release include a tabletop virtual companion robot, a long-planned advanced Siri model with a visual personality, a smart speaker with display capabilities and home security cameras.
Apple finished the week at US$231.59, a 1.7 percent gain from Monday.
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Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.